Innovex International, Inc (INVX)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	660,803	424,060	467,189	294,841	364,973
Total assets	US$ in thousands	1,197,480	1,028,180	436,286	284,895	1,151,170
Total asset turnover		0.55	0.41	1.07	1.03	0.32

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $660,803K ÷ $1,197,480K
= 0.55

The total asset turnover ratio for Innovex International, Inc. demonstrates notable fluctuations over the examined period from December 31, 2020, through December 31, 2024. At the close of 2020, the ratio stood at 0.32, indicating a relatively low efficiency in utilizing total assets to generate sales. This figure significantly increased in 2021 to 1.03, reflecting an improved capability to convert assets into revenue, potentially due to operational efficiencies or strategic shifts. The ratio experienced a marginal increase in 2022, reaching 1.07, which signifies a continued enhancement in asset utilization.

However, in 2023, the ratio declined sharply to 0.41, suggesting a reduction in asset efficiency, possibly attributable to increased asset base without a proportionate rise in sales, operational disruptions, or strategic changes affecting sales generation. The downward trend persisted, as the ratio increased modestly to 0.55 in 2024 but remained substantially below the 2021 and 2022 peak levels. This indicates that while there was some recovery in asset utilization, the overall efficiency in converting assets into sales has not returned to previous higher levels.

Overall, the pattern of the total asset turnover ratio indicates periods of operational improvement followed by notable setbacks, highlighting variability in the company's asset utilization efficiency over these years.